Learn about the Global X Blockchain ETF (BKCH) and its advantages to expose yourself to BTC at a lower risk
Although Bitcoin’s returns at the moment are not being as good as when it reached its all-time high, it does not imply that investors are no longer interested in this cryptocurrency. Therefore, as the world of cryptocurrencies advances, evolves and expands, Bitcoin also does so indirectly. The ways to access BTC are growing, and one of them is through ETFs. The latest example of this is the Global X Blockchain ETF (BKCH), and here we tell you what it is about.
It is no secret that although the prices are a bit high for an average investor, there are exchange-traded funds or ETFs that take advantage of this to grow. These ETFs leverage a growing number of stocks with correlations and links to cryptocurrencies to provide market participants with equity-based exposure to Bitcoin and more.
However, in markets such as the United States, regulators are opposed to the idea of approving ETFs with the title of Bitcoin expressly. This leads to choosing to use the word blockchain or the like. However, what happens in the US is an opportunity for other countries that are looking for alternatives to adapt their regulatory framework to make it more open to these options with cryptocurrencies.
What is the Global X Blockchain ETF (BKCH)?
The Global X Blockchain ETF (BKCH) is a new exchange-traded fund, which may be the key to attracting more investors to the cryptocurrency sector. BKCH stands out for having extensive exposure to BTC derivatives. Coinbase , Bitcoin Marathon Digital, and Riot Blockchain combine for 35% of the fund’s listing. Hence, ETFs like BKCH serve investors seeking exposure to Bitcoin without having to hold BTC tokens directly.
Bottom line: BKCH is a blockchain fund with ties to Bitcoin. Either way, it could be a good way to access two topics under one umbrella.
What is critical for investors to understand is that although blockchain is the backbone of crypto transactions, it has myriad applications beyond this. This is reflected in many of BKCH’s seasoned competitors. However, the new generation of blockchain ETFs, including the Global X fund, provide more direct exposure, albeit through stocks, to cryptocurrencies.
In that sense, we can highlight that the BKCH tracks the Solactive Blockchain Index. In addition, it is designed to provide exposure to companies that take advantage of the adoption of blockchain technology. This includes cryptocurrency mining companies, blockchain and digital asset transactions, blockchain applications, and much more.
Some interesting facts
According to Global X, “Organizations are expected to spend US $ 6.6 billion on blockchain solutions in 2021, a 50% increase from 2020.” Then they added that “by 2024, total spending on blockchain solutions is expected to reach US $ 19 billion, a 48% compound annual growth rate.”
If you have done enough research on Bitcoin and cryptocurrencies, you will know that blockchain technology itself has infinite possibilities and potentials. This is why so many people have decided to focus on this, rather than what may or may not happen with Bitcoin. That is why ETFs like the one we present here are valid to analyze.